Silver hits $89 after breakout; 4H charts point to $79 pullback

Silver climbed to $89 on May 7 after breaking out of a descending triangle on the daily chart. The metal traded near $86.94 on the following session and remains inside an ascending parallel channel on intraday charts that has been in place since May 4.

On the daily timeframe the breakout pushed price into the 0.382 Fibonacci retracement level around $89. Daily relative strength index sits near 70. A high reading on the BBWP volatility indicator has printed, indicating elevated market volatility and a near-term directional decision point.

On the four-hour chart, momentum readings have weakened. The 4-hour RSI fell from its upward trendline into neutral territory and the MACD histogram turned negative and is sloping lower. Price now hovers near the channel’s lower boundary without a clean breakdown. A break below that channel would bring the 0.5 Fibonacci retracement level at $79 into focus.

Independent technical analyst Remdocan identified the 83.052 swing low as the short-term trend line to monitor and flagged the $96 region as the next major decision area. A daily close above $96 would open resistance near the 0.236 Fibonacci level at about $101, while a break under $83 would expose support between $70 and $65 and a deeper daily support level at $60.

Alexander Potavin of Finam Group noted that silver responds to macroeconomic factors, industrial demand and supply constraints. He observed that silver may rise when monetary policy is eased through interest rate cuts, but that prices can react more strongly to economic downturns and recessions because of the metal’s industrial demand component.

Key price levels cited in market commentary include a daily close above $89 as confirmation of continuation, $83 as an invalidation point for the short-term uptrend, and $79 to $70 as the primary support zone if short-term momentum fades. A sustained push above $96 would shift focus toward prior peaks near $101.